Halo Resources Ltd.
OTC Bulletin Board : HLOSF

Halo Resources Ltd.

January 12, 2006 09:00 ET

Halo Airborne Geophysics Survey Generates New Targets at Duport

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 12, 2006) - Mr. Marc Cernovitch, President and CEO of Halo Resources Ltd. (TSX VENTURE:HLO)(TSX VENTURE:HLO.WT.A)(TSX VENTURE:HLO.WT.B)(OTCBB:HLOSF)(FWB:HRL) is pleased to announce the results of the helicopter-supported airborne magnetometer and electromagnetic (EM) survey completed on the Duport Property located 60 km west of Kenora, Ontario. The purpose of the survey was to identify suitable drill targets that have the potential for hosting gold deposits in the highly prospective area adjacent to the existing high grade Duport gold resource. This is the first such detailed program that has been conducted in the area and allows for a meaningful interpretation of all historic exploration activity and past gold production that has been carried out in the region since the late 1800's. The results of this program represent a major step forward in understanding the geological controls and spatial association between structures, lithologies and sulphides as they relate to gold mineralization. This will greatly assist the Company's effort to add additional gold resources to the Duport project.

Fugro Airborne Surveys completed 2,743 line kilometers of coverage at 50 and 100 meter line spacings between August 15 and September 2, 2005. This was accomplished by using a DIGHEM multi-coil, multi-frequency electromagnetic system, supplemented by a high sensitivity cesium magnetometer. The information from these sensors was processed to produce maps that display the magnetic and conductive properties of the survey area. A GPS electronic navigation system ensures accurate positioning of the geophysical data with respect to the base maps. The airborne geophysics survey has identified a number of high priority targets designated Areas 1 to 6 inclusive on the accompanying map. Each area contains single to multiple, short strike length, moderate to strong EM conductors. These targets will be the subject of a follow-up Phase II program scheduled for late January, 2006. Please refer to figure 1 showing interpretation and anomaly designation.

To see Figure 1, please check this link http://www.ccnmatthews.com/docs/halo112.jpg

In the first quarter of 2005 the Company completed a Phase I work program consisting of drilling, regional exploration and satellite imagery studies. The results of this work and the airborne survey are being integrated to facilitate an enhanced structural interpretation of the Duport deposit and related satellite gold targets. The Duport deposit itself, shows a conspicuous EM response in the vicinity of two anomalous magnetic patterns. This correlates with drill data that suggest that Duport is located near a major contact between two lithologies and as such has been helpful in differentiating similar geological environments to this on the property. One of the objectives of the program was to identify additional, untested, Duport-style gold targets associated with altered shear zones containing sulphides related to fault structures, intrusive bodies and competency contrasts between differing lithologies.

The geologic setting that defines the Duport deposit has been replicated elsewhere on the property by the detailed airborne survey. Roscoe Postle and Associates Ltd. of Toronto calculated a resource estimate in August, 2005, which conforms to Canadian NI 43-101 standards. The deposit contains compliant resource estimate, previously disclosed in a press release dated August 9th, 2005:

Tonnes Au Au
(1,000) (g/t) (oz)

Indicated 424,000 13.4 (183,000)
Inferred 387,000 10.7 (133,000)

1. The effective date of the resource estimate is June 1, 2005.
2. The resources were estimated using a cut-off grade of 6.86 g/t Au, a
minimum thickness of 1.5 m, a gold price of US$400 per oz, a gold
recovery of 91%, and all assays were capped at 68.56 g/t,
3. Mineral resources which are not mineral reserves do not have a
demonstrated economic viability.

The total field and vertical gradient magnetic maps outline several significant structural and lithological features very similar to those observed at the Duport deposit. These include:

- the presence of a series of ovoid or annular features representing buried intrusive bodies that are aligned through the central portion of the property. These intrusive features modify the strong linear northeast fabric of the enclosing volcanic stratigraphy. The Duport deposit is situated on the western flank of the second most southerly of these bodies which correlates to an anorthosite complex.

- the presence of regional east-northeast trending faults. The prominent fault that trends through the southernmost and largest circular feature abruptly truncates roof pendants capping this intrusive and demarcates two structural domains, one to the south showing more regular magnetic patterns and one to the north that is represented by patterns that are noticeably more discontinuous and broken up.

Of major importance is the presence of EM anomalies that are spatially associated with prominent structural features and geophysically-inferred contacts between lithologies. Area 1 covers five untested short-strike length conductors near the contact of a large intrusive body akin to the geological environment illustrated at Duport. Area 2 includes moderate to strong EM conductors that are located immediately west of Duport that may correlate with sheared sulphide-bearing volcanic rocks. The trend of the conductors indicates a possible fold-nose or closure in the volcanic stratigraphy north of Cameron Island. Area 6 covers three EM anomalies situated along a lithological contact which is directly associated with a flexure in a regional fault lineament that is known to host gold mineralization 600 meters to the east.

A Phase II drill program is being planned that has a two-fold objective that will:

- test the Duport deposit in areas of structural complexity for the discovery of "high-grade" ounces. Duport remains open in all directions.

- test EM conductors covering the most attractive geological environments in close proximity to Duport and follow-up on other high priority satellite EM anomalies.

Qualified Person

The above information has been prepared under the supervision of Kevin Leonard, who is designated as a "Qualified Person" with the ability and authority to verify the authenticity and validity of the data. The field work is supervised by Kevin Leonard, the project "Qualified Person" under the definition of NI-43-101.

Additional Information

For additional information on the Duport Property, please see the Technical Report on the Duport Property, Northwestern Ontario, Canada, dated November 8, 2004, filed on SEDAR at www.sedar.com.

Halo Resources Ltd.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. Currently the Company owns or has an interest in 3 projects: Duport, which is an advanced stage gold project; Bachelor Lake, which is a gold exploration project, and the Sherridon project, which is a grass roots VMS project. The Company is operated by an experienced management team and backed by a strong network of mining financiers. The Company's growth strategy is to develop a diversified portfolio of advanced mining projects.

Except for the historical statements contained herein, this news release presents forward-looking statements that involve inherent risks and uncertainties. Although the management and officers of Halo Resources Ltd. believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, they give no assurance that their expectations will be achieved. Certain risks and uncertainties inherent in the Company's operations include political, economic, environmental and geological issues, including but not limited to, the continued need for additional capital, the competition within the mining industry, and other risks detailed from time to time in the Company's periodic reports filed with the British Columbia Securities Commission and the United States Securities and Exchange Commission. Investors are cautioned that, except as disclosed in the materials to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Halo Resources Ltd. should be considered highly speculative. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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